AUD/USD Forecast: Australian employment data can save the aussie

AUD/USD Current Price: 0.7746

Australian Westpac Leading Index improved from 0.12% to 0.26% in January.
Australia is expected to have added 40,000 new jobs in January.
AUD/USD has little chances of raising as long as it holds below 0.7770.

The AUD/USD pair closed in the red for a second consecutive day, falling intraday to 0.7723. Plummeting gold prices added pressure on the aussie, as the bright metal traded as low as $1,769.40 a troy ounce, its lowest since last November. The American dollar moved alongside US Treasury yields, both easing in the US afternoon.

Australia published the January Westpac Leading Index, which came in at 0.26%, improving from 0.12%. The country will release January employment data early on Thursday and report that 40,000 new jobs were added in the month. The unemployment rate is foreseen at 6.5% down from the previous 6.6%. Upbeat data may underpin the AUD, although enthusiasm should be limited as per RBA’s view.

AUD/USD short-term technical outlook

The AUD/USD pair offers a neutral-to-bearish stance in the near-term and has little chances of rising unless it surpasses the 0.7770 resistance area. The 4-hour chart shows that it´s struggling around its 20 SMA while between the longer ones, as technical indicators turned marginally lower just below their midlines. A lower low for the day, increases the risk of a bearish extension, mainly if the slide extends below 0.7710.

Support levels: 0.7710 0.7675 0.7630

Resistance levels: 0.7770 0.7815 0.7850

View Live Chart for the AUD/USD

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